7th Pay Commission: New Payment Rule On Ex-Gratia Lump Sum Compensation To CGS

The regulations for paying ex-gratia lump-sum compensation to the families of Central Government employees who die in the line of duty have been changed by the Indian Government under the Ministry of Personnel Public Grievances and Pensions and Department of Pension and Pensioners Welfare. Ex-gratia lump sum compensation is payable to the families of Central Civil Government employees who die before retirement while doing their legitimate official responsibilities under a variety of conditions. From time to time, the amount of ex-gratia lump-sum settlement has been changed.

The Ministry of Finance (Department of Expenditure) has announced on 30th September 2021 that "On death of a Government servant, payment of other lump-sum amounts, such as death gratuity, GPF balance and CGEGIS amount, is made in accordance with the nominations made by the Government servant during service. Accordingly, it has been decided that, on death of a Government servant in the performance of bona fide duty also, payment of ex-gratia lump sum compensation may be made to a member or members of the family in whose favour a nomination is made by the Government servant during service. Family for this purpose shall have the same meaning as in the case of gratuity and it shall include the members of family as mentioned in sub-rule (6) of Rule 50 of the CCS (Pension) Rules, 1972."

According to the announcement issued by the Ministry of Finance, the Common Nomination Form in Form 1 annexed to the CCS (Pension) Rules, 1972 has been changed to incorporate the nomination in respect of the ex-gratia lump sum payment.

The DoPPW has said in the announcement that the Common Nomination Form in Form 1 appended to the CCS (Pension) Rules, 1972 has been amended to include the nomination in respect of the ex-gratia lump-sum payment and the same is enclosed. Accordingly, nomination in respect of ex-gratia lump sum payment shall also be made in this Common Nomination Form. The nomination for ex-gratia lump sum payment shall be subject to the provisions as applicable in the case of gratuity under Rule 53 of the CCS (Pension) Rules, 1972. Since the ex-gratia lump sum payment is payable to the family only, no nomination shall be made in favour of a person who is not a member of the family, even where the Government servant has no family.

The DoPPW said that if no nomination has been made or the nomination made by the Government servant does not subsist, the exgratia lump sum compensation will be shared equally by all eligible family members, as in the case of Gratuity, in accordance with Rule 51 of the CCS (Pension) Rules.

These instructions shall be applicable in the case of death of a Government servant on or after the date of issue of this OM. Cases of payment of ex-gratia lump sum compensation on death of Government servants before the date of issue of this OM shall continue to be dealt with in accordance with the instructions applicable before the issue of this OM, the department has clarified.